Northern Natural Gas Company

Fifth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 12/31/9999, Docket: RP00-404-007, Status: Accepted

Original Sheet No. 142B Original Sheet No. 142B : Pending

RATE SCHEDULE PDD

Preferred Deferred Delivery Service

3. PREFERRED DEFERRED QUANTITY AND MAXIMUM ACCOUNT TOTAL:

The Contract Total Quantity (CTQ) shall be the maximum total volume of natural

gas, specified in the Shippers' PDD Service Agreement Appendices, that Northern

may accept for service under this Rate Schedule for injection or withdrawal to

the Shipper's account. Shipper shall not be permitted to exceed the CTQ.

The Preferred Deferred Quantity (PDQ) shall be the maximum daily volume of

natural gas, specified in Shipper's PDD Service Agreement Appendices, that

Northern may accept for service under this Rate Schedule for injection or

withdrawal. Shipper shall not be permitted to exceed the PDQ.

In addition to the PDQ, the Shipper will agree to a maximum total quantity

(MTQ), as set forth in the PDD Service Agreement Appendices, which will limit

the total amount in the Shipper's account at any time.

4. RATE

The maximum and minimum rates for service under this Rate Schedule are listed on

Sheet 55 of this Tariff. Shipper shall pay the maximum rate for service under

this Rate Schedule unless a lower rate has been agreed to as set forth in

Appendix A.

The rates and charges for service under this Rate Schedule shall include each of

the following:

(a) Capacity Fee - The Capacity Fee set forth on Sheet No. 55 shall be

multiplied by the applicable CTQ. The Capacity Fee will be credited or

refunded in proportion to the amount of service that Northern is unable to

provide the PDD Shipper.

(b) Injection Charge - The Injection Charge per MMBtu set forth on Sheet No. 55

shall apply to all quantities received for Shipper's account.

(c) Withdrawal Charge - The Withdrawal Charge per MMBtu set forth on Sheet

No. 55 shall apply to all quantities delivered to Shipper.

(d) Monthly Inventory Charge - The Monthly Inventory Charge per MMBtu is set

forth on Sheet No. 55 and shall apply to the absolute value of the

inventory balances in the Shipper's PDD account for the month.

(e) In no event will Northern charge a PDD shipper more than that which it

would have charged an FDD shipper using the same injection and withdrawal

parameters over an FDD cycle year.

Discounted Rates: Northern may from time to time at its sole discretion charge

any individual Shipper under this Rate Schedule a PDD rate which is lower than

the maximum rate set forth on currently effective rate sheet, provided, however,

that such rate charged may not be less than the minimum rate set forth in

currently effective Tariff rate sheet for Rate Schedule PDD.

Negotiated Rates: Northern and Shipper may mutually agree to rates for services

that may be above the maximum rates or below the minimum on the currently

effective Rate Sheet for Rate Schedule PDD. Such rates shall be subject to

Northern's negotiated rate authority granted by F.E.R.C.

Transportation Service Associated with Deferred Delivery Service

----------------------------------------------------------------

PDD quantities must be delivered to or redelivered from a Deferred Delivery

point pursuant to a Throughput Service Agreement. Deliveries and redeliveries

of the PDD quantities shall be subject to the rates, terms and conditions of the

applicable Throughput Service Agreement including transportation entitlements

and capacity allocations.